BTC’s Drop to $84K Fills Historic CME Futures Gap as Liquidations Approach $1 Billion

Bitcoin Dips to $83.5K, Fills CME Futures Gap as Nearly $1B in Leveraged Longs Get Wiped Out

Bitcoin’s (BTC) recent rally has met a sharp reversal, with prices sliding to $83,500 on Tuesday, fully closing a major CME futures gap left after Monday’s surge. The move comes after BTC initially spiked to $92,000 in response to President Donald Trump’s announcement of a U.S. crypto strategic reserve, which fueled widespread speculation across digital asset markets.

However, that price jump created a significant gap between Friday’s CME closing price of $84,500 and Monday’s opening level of $95,300. Historically, CME futures gaps tend to act as price magnets, often pulling Bitcoin back to previous levels where no trading activity occurred. By early Tuesday, BTC had retraced enough to completely fill the gap.

This correction wiped out nearly $900 million in leveraged long positions over the past 24 hours, with total liquidations exceeding $1.5 billion in just three days. Data shows that most of these liquidations occurred during late U.S. and early Asian trading sessions as BTC’s momentum flipped bearish.

Liquidations happen when an exchange automatically closes a trader’s leveraged position due to insufficient margin, often leading to cascading sell-offs in highly leveraged markets. When liquidations reach extreme levels, they can signal overheated conditions and, in some cases, mark local bottoms for asset prices.

But traders may not be out of the woods just yet.

Another CME futures gap—this one below $80,000—remains unfilled and is now catching traders’ attention. The gap formed in early November following Trump’s re-election, with CME Bitcoin futures opening above $81,000 after an election-day high of $77,930. Given Bitcoin’s historical tendency to revisit these gaps, some analysts believe further downside could be in store before BTC stabilizes.

With macroeconomic uncertainty, liquidation-heavy trading, and the White House’s evolving stance on crypto, all eyes remain on Bitcoin’s next move.